Gabriel Resource could sue Romania over mining project, says economy minister

The government is expecting the Canadian company to file a lawsuit after draft bills that would approve the mining project remained stuck in Parliament due to insufficient backing from MPs.

Constantin Nita, the minister of economy, said that there is a valid contract between Romanian and Gabriel Resources, the Canada-based company controlling Rosia Montana Gold Corporation (RMGC). The government holds close to 20 percent of the shares in RMGC, the miner seeking to start the gold and silver exploitation in western Romania.

Nita said that the company “will definitely sue Romania”, adding that the government will have to select a law firm to work on the international trial, according to Agerpres newswire. The minister did not mention how much the company would ask in damages for the mining project.

Canadian daily The Globe and Mail reported on May 1 that Gabriel Resources did not expect the project to move forward and was already preparing for an international arbitrage procedure, which would be probably audited in Vienna, Austria, in the second half of this year, according to Agerpres.

RMGC announced earlier this year it was starting to fire staff over delays in the approval of the project. The company has been trying for 15 years to secure all permits and is battling NGOs in court.

Discussions regarding the approval of the project have triggered massive protests across Romania and abroad last year. People were calling for the ban of cyanide-based mining in Romania and for the termination of project at Rosia Montana. They were joined by protesters that were angry with the exploitation of shale gas in Romania, while others vented their outrage at the corruption of politicians.

Ovidiu Posirca